ZURICH, Switzerland, (February 2016) – STOXX Limited, provider of innovative, tradable and global index concepts, recently introduced the STOXX Low Carbon index family. The new index family consists of four sub-families, which offer varying degrees of carbon exposure to enable market participants to limit the exposure of their portfolios to carbon risk while participating in the low-carbon economic growth.
The STOXX Low Carbon Indices are based on reported and estimated carbon emission data of companies, collated and provided by CDP (formerly Carbon Disclosure Project), the leading international non-profit organisation working with shareholders and companies to systematically change market behavior and South Pole Group, a leading global sustainability solutions provider. As part of the four sub-families, the STOXX Low Carbon Indices use both estimated and reported carbon intensity data that are closest to the underlying benchmark. They are aimed at investors who want to decarbonise their portfolio while participating in the market movements.
“Reducing carbon emissions is a global objective, and market participants look for fully tailored solutions to decarbonise their portfolios to address long-term climate risks, while participating in the sustainable growth of a low-carbon economy. One of their main challenges in this process is high-quality data that makes granular analysis of companies’ carbon footprint and climate impact through the entire supply chain possible,” said Hartmut Graf, chief executive officer, STOXX Limited. “Our STOXX Low Carbon index family enables investors to easily incorporate sustainability factors into their portfolio which focus on carbon emissions. Especially the STOXX Climate Change Leaders Index provides an innovative solution to track companies that are leaders in mitigating climate change and are publicly committed to reducing carbon emissions.”
Overall, the STOXX Low Carbon index family is designed to act as an underlying for exchange-traded funds and other investable products, such as structured products and derivatives, and as benchmarks for passive and active investment strategies.
“This newly launched carbon index family will help get investors ready for a more carbon-constrained world and its financial implications,” emphasises Maximilian Horster, Director Financial Industry at South Pole Group. “We are thrilled to be able to share our long-standing expertise in carbon-responsible investing in this joint action with STOXX and CDP.”
“We are delighted to be part of this initiative together with STOXX and South Pole Group to launch this low carbon index family. These innovative indices will flag the growing importance of climate issues in portfolios and encourage investment flows into low-emitting companies, such as those within CDPs Climate A List, thus fostering the transition to a low-carbon economy,” said Paul Simpson, CEO of CDP.